1. Payment Due Date Interest Penalty Discounts
For: Word Problem page 9
Payment Due Date
FEB DAYS
APR
JUN
SEP
NOV
LOST THE
DISCOUNT !
Billing Office
Terms 30
DAYS
Contract:
DEH
2/10, NET 30
Invoice Dated:
18 JAN
23 JAN
3/10, NET 30 + 10
days =
28 JAN
Discount Payment Due Date
Received
In Billing Office:
LATER DATE
23 JAN
Terms:
+ 30 days
15 JAN
24 JAN
+ 7 =
Receiving ROG:
Report AOG:
22 JAN
Payment
Due Date
22 JAN =
22 FEB
EARLIER DATE
Interest Penalty
Total Interest:
Julian Date
Daily Percentage Factor
Interest Rate
Principle
Interest Amount
ECPD:
- PDD:
25 JUN
22 FEB
176
053 , X X = , X X = =
123
Days Late , X X =
* Note - Add the total of the “Interest Amount” column to the
original amount of principle to get the payment amount. , X X = X X = ,
Discounts
Step 1: Principle
X Discount %
= Discount Amount
Step 2: Principle
- Discount Amount
= Cost to Government
PE 1 AK